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Lev, Tax Advisor

Category: Tax

Satisfied Customers: 28084

Experience: Taxes, Immigration, Labor Relations

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The taxpayer died in May of 2014. The firm that always does

Customer Question

The taxpayer died in May of 2014. The firm that always does her taxes did the filing for 2014. They only included income prior to the death, so the remainder of income (dividends, interest, etc) is IRD. I did the son's tax return for 2014, who is the executor of the estate. I did not realize (I should have, but overlooked it) that all of the 2014 income was not reported on the return until I saw the return today. Form 706 does not need to be filed. The deceased did not owe tax for 2014 and would not have even if all income was reported. Now I am concerned since some of this income was not reported at all, what to do for 2015. Should a 1040X be filed for the deceased, or a 1040X filed for the son? JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of? Customer: This estate is a true mess due to the deceased having uncashed IRS refund checks and that still has not been resolved. One is dated in 2003 with her deceased husband's name on the check, who has since passed away. Some of the stock shares are still in the deceased's name. JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.

The estate tax return was a 1040 ' only included income that the taxpayer actually received. Therefore there were dividends, etc. that were not reported in 2014. A schedule K1 was filed, but did not report any income.

But for all IRD income - received AFTER the death - these must go to the estate tax return - form 1041 - and K1 are filed to each beneficiary.

That K1 should be used to pass taxable income from the estate to each beneficiary.So if income was distributed from the estate - but was not reported on K1 - that was a mistake - and should be corrected.

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